REPORT OF INDEPENDENT AUDITORS

TO THE BOARD OF DIRECTORS
THE REGIONAL ENVIRONMENTAL CENTER FOR CENTRAL AND EASTERN EUROPE


We have audited the balance sheet of the Regional Environmental Center for Central and Eastern Europe (the Organization) as at December 31, 1997 in accordance with International Standards on Auditing.

In our opinion, the balance sheet gives a true and fair view of the financial position of the Organization at December 31, 1997 and the results of its operations and its cash flows for the period that ended in accordance with International Accounting Standards.

ERNST & YOUNG
Budapest, Hungary
February 12, 1998

     

The Regional Environmental Center for Central and Eastern Europe
BALANCE SHEETS (All amounts in ECU 000's)

  DECEMBER 31,
1997 		DECEMBER 31,
1996
  Unrestricted
Fund 		Restricted
Funds 		Conference
Center 		Total
Funds 		1996*
Total
ASSETS
Current Assets: 		 
  Cash 530 353 0 883 905
  Term deposits 372 1,527 0 1,899 1,669
  Prepaid expences and accured income 97 46 0 143 434
  Receivables 0 2,718 0 2,718 802
Total current assets 999 4,644 0 5,643 3,810
Fixed assets, net 627 72 12 711 496
TOTAL ASSETS 1,626 4,716 12 6,354 4,306

LIABILITIES AND FUND BALANCES
Current Liabilities: 		 
  Advance payments 747 0 0 747 1,444
  Accounts payable and accruals 151 3,119 7 3,277 549
  Grants payable 263 258 0 521 579
Total current liabilities 1,161 3,377 7 4,545 2,572
Interfund transfers (1,046) 984 62 0 0
Fund balances 1,511 355 (57) 1,809 1,734
TOTAL LIABILITIES AND FUND BALANCES 1,626 4,716 12 6,354 4,306
Note: This is a short form of the accounts. For the complete form please see the audited financial statement.
* The accounting period for 1996 covered 14 months as accounts were transfered to the foundation under new legal identity.


The Regional Environmental Center for Central and Eastern Europe
STATEMENT OF REVENUE, EXPENCE AND CHANGES IN FUND BALANCES (All amounts in ECU 000's)

  12 MONTHS ENDED DECEMBER 31, 1997 14 MONTHS ENDED DECEMBER 31, 1996
  Unrestricted
Fund 		Restricted
Funds 		Conference
Center 		Total
Funds 		1996
Total
REVENUES  
  Cash contributions 686 3,276 0 3,962 4,446
  Internal charges 1,027 0 0 1,027 0
  Interest income 44 62 0 106 121
  Other 152 0 67 219 189
TOTAL REVENUE 1,909 3,338 67 5,314 4,756
EXPENSES  
  Direct program expenses 1,031 1,597 124 2,752 2,655
  Internal charges 0 1,027 0 1,027 0
  Grants awards 140 695 0 835 1,204
  Administration 623 0 0 623 1,149
  Depreciation 127 0 0 127 124
  Foreign exchange gain/loss (124) (5) 0 (129) (252)
TOTAL EXPENSES 1,797 3,314 124 5,235 4,880
Excess (deficiency) of revenue over expenses 112 24 (57) 79 (124)
Fund balances at the beginning of the year 1,378 356 0 1,734 1,858
Interfund equilibration 21 (25) 0 (4) 0
FUND BALANCES AT THE END OF YEAR 1,511 355 (57) 1,809 1,734

 
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REC * PUBLICATIONS * ANNUAL REPORT 1997

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